Is Bhc Franchisee allowed to be directly or indirectly owned or controlled by the government of any country subject to a U.S. embargo?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisee is not directly or indirectly owned or controlled by the government of any country that is subject to an embargo imposed by the United States of America, nor does Franchisee or any Principal Equity Operator act directly or indirectly on behalf of the government of any country that is subject to an embargo imposed by the United States of America.
Franchisee agrees that Franchisee will notify Franchisor in writing immediately of the occurrence of any event that renders the foregoing representations and warranties of this section 16.12 incorrect.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee cannot be directly or indirectly owned or controlled by the government of any country that is subject to a U.S. embargo. The franchisee must also ensure that none of its principal equity operators act directly or indirectly on behalf of such a government.
Bhc requires franchisees to acknowledge and warrant that they are not owned or controlled by any government subject to a U.S. embargo. Furthermore, franchisees must notify Bhc immediately if any event occurs that would make this representation incorrect. This requirement is part of Bhc's broader compliance with U.S. regulations concerning foreign assets control and anti-terrorism legislation.
This provision is included to ensure that Bhc complies with U.S. laws and regulations. A prospective franchisee should carefully review the list of countries subject to U.S. embargoes to ensure they meet Bhc's ownership and control requirements. Failure to comply with these regulations could result in the termination of the franchise agreement and potential legal consequences.